Grievance policy guidance notes

Grievance procedures are aimed at encouraging employers and employees to resolve disputes in the workplace without the need to resort to a tribunal claim as a remedy. 

Tribunals must take into account guidance in the Code of Practice on Disciplinary and Grievance Procedures produced by the Arbitration Conciliation and Advisory Service (ACAS) (“the ACAS Code”) in respect of all claims to which it relates. This sets down minimum standards for a company to follow.

A grievance is defined as any concern, problem or complaint that employees raise with their employers andit will apply to most claims commonly brought in the tribunal, including those related to discrimination, unfair dismissal, equal pay, breach of contract, working time, detriment, and deduction of wages.  The ACAS Code gives tribunals the power to adjust compensation by up to 25% for either party’s unreasonable failure to adhere to the provisions in the Code. Therefore, although employees will no longer be barred from bring a claim, if they have not first raised a grievance, their compensation may be reduced to take this into account. It also means that it is increasingly important for companies to introduce a grievance procedure and to be seen to be complying with it.

Failing to consider legitimate grievances raised by the employee could also entitle the employee to bring a claim for constructive unfair dismissal. This allows an employee to treat the contract of employment as terminated if they believe that the employer is in fundamental breach of it. The type of ‘fundamental breach’, which is most frequently relied upon, is the breach of the implied term of trust and confidence and failing to reasonably  investigate a grievance may well fall within this category.

The current maximum limit of the compensatory award for an employee who was dismissed and who successfully claims unfair dismissal is as set out under HR Facts and Figures on the Buddy website.